Kenvue announced its financial results for the fiscal second quarter ended June 30, 2024.
Thibaut Mongon, Chief Executive Officer, said,
“We are on track to deliver the financial targets we set for 2024, and while we are in the early days, our work to transform Kenvue into a bolder, more agile organization focused on profitable growth is producing results. With the progress we have made in the first half of the year to increase productivity and free up resources, we are accelerating investment behind our global portfolio of iconic brands to reach more consumers and deliver on our long-term value creation algorithm.”
Second quarter Net sales decreased by 0.3%, versus a 5.4% increase in the prior year period. Organic growth increased by 1.5%.
Value realization was driven by carry-over pricing and new price actions. Slight volume declines were driven primarily by Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.
The second quarter gross profit margin expanded to 59.1% from 55.5% in the prior year period. Adjusted gross profit margin grew to 61.6% from 57.5% in the prior year period.
The year-over-year improvement primarily reflects productivity gains attributable to the company’s global supply chain efficiency initiatives, including commodity pricing, and value realization.
Based on current spot rates, Kenvue reaffirms its outlook for 2024, including net sales growth of 1.0%-3.0% (2.0%-4.0% organic growth).
Thibaut Mongon, Chief Executive Officer, said,
“We are on track to deliver the financial targets we set for 2024, and while we are in the early days, our work to transform Kenvue into a bolder, more agile organization focused on profitable growth is producing results. With the progress we have made in the first half of the year to increase productivity and free up resources, we are accelerating investment behind our global portfolio of iconic brands to reach more consumers and deliver on our long-term value creation algorithm.”
Second quarter Net sales decreased by 0.3%, versus a 5.4% increase in the prior year period. Organic growth increased by 1.5%.
Value realization was driven by carry-over pricing and new price actions. Slight volume declines were driven primarily by Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.
The second quarter gross profit margin expanded to 59.1% from 55.5% in the prior year period. Adjusted gross profit margin grew to 61.6% from 57.5% in the prior year period.
The year-over-year improvement primarily reflects productivity gains attributable to the company’s global supply chain efficiency initiatives, including commodity pricing, and value realization.
Based on current spot rates, Kenvue reaffirms its outlook for 2024, including net sales growth of 1.0%-3.0% (2.0%-4.0% organic growth).
Read Next
Kenvue Announces Changes to Its Board of Directors
Kenvue Releases Inaugural Healthy Lives Mission Report
